New Study Shows Thriving Small Businesses Lift Real Estate ValuesThe American Express OPEN Independent Retail Index Analyzes Small Business Health at National, City, and Neighborhood Levels

NEW YORK, October 18, 2011 --

Neighborhoods with thriving independent businesses saw home values outperform
citywide markets by 50 percent over the last 14 years. Those same neighborhoods
also benefitted from strong hiring at small,
independently owned businesses. The American Express OPEN Independent Retail
Index, conducted by Civic Economics, analyzes America's small businesses on a
national, city and neighborhood level. It shows the benefits to communities that
support local independent shops and analyzes the economic vitality* of locally
owned retail businesses, dining establishments and bars over the past two
decades.

The report studied 27 neighborhoods where small businesses have thrived in 15
major U.S. cities. It found that home values in these neighborhoods outperformed
their broader markets by 4 percent per year and 50 percent cumulatively over the
past 14 years. The "indie hotspots" in the 27 neighborhoods support an average
of more than 1,800 jobs at independent retailers, restaurants and bars.

"This research validates what we know intuitively -- that small businesses are
the lifeblood of our communities," said Susan Sobbott, president, American
Express OPEN. "There is concrete evidence that thriving independent
neighborhoods lead to higher real estate values and more local jobs."

How 15 US Cities FaredThe American Express OPEN Independent Retail Index charted and ranked the
performance of independently owned retail and eating and drinking establishments
in 15 of the largest U.S. cities over the last two decades. [A detailed Fact
Sheet is available for each of the cities surveyed.]

"Our study shows there is no single formula for success -- any U.S. city can
nurture a vibrant small business community," said Sobbott.

The survey ranked 15 pre-selected major cities in terms of the vitality of their
small business sector in both the retail and eating and drinking sectors. The
index reflects the performance of a city's independent business sector relative
to the national average (An index score of 200 equals the national average in
2009):

1. New York

287

2. San Francisco

250

3. Washington, D.C.

238

4. Boston

233

5. Philadelphia

224

6. Miami

223

7. Los Angeles

213

8. Seattle

199

9.Atlanta

192

10. Chicago

191

11. Detroit

185

12. San Diego

184

13. Minneapolis

184

14. Dallas

171

15. Phoenix

159

Independents Faced Challenges Over the Past 20 Years
Not surprisingly, the study showed independently owned retailers and restaurants
have lost some of their percentage of the market since 1990. While independent
bars and restaurants registered a solid 64 percent of total sales in 2009,
that's down 7 percentage points over the past 20 years. And, while small retail
establishments accounted for nearly half (46%) of total retail sales in 2009,
that's down 11 percentage points over the past 20 years.

In addition, the report identified many encouraging trends:

Independent full-service restaurants have held onto
their relative position and retain strong support among dining consumers;

Local bars and taverns of all kinds remain strong;

Independent grocery stores have kept pace with
overall industry performance, and have seen a modest uptick in the last
decade;

Local clothing stores have staged a healthy rebound
in recent years; and

Furniture stores and the sector that includes
sporting goods, books, music, and hobby shops have maintained a high
percentage of the market throughout the study timeframe.

"Small businesses are resilient but they face headwinds in
this uncertain economy," said Sobbott. "If consumers commit to ‘Shopping Small',
we can provide Main Street with an important boost at a time when they need it
most. According to the Small Business Administration, small businesses accounted
for 64 percent of net new job creation in the past 15 years, and more business
in our local communities will drive more hiring in the neighborhoods where we
live."

Cities' Strengths and Opportunities Vary
Noteworthy findings include:

Hotbeds of vibrant independent businesses are New
York, San Francisco, Boston, Washington D.C. and
Philadelphia -- these five cities consistently ranked high in both
retail and eating and drinking categories:

New York came out on top overall and has
the most vibrant independent retail businesses;

Washington, D.C. and Philadelphia
ranked above the national benchmark for both retail and eating and
drinking establishments;

San Francisco's independent eating and
drinking establishments actually grew their percentage of the market
during the study period.

San Diego, Minneapolis, Dallas,
Phoenix and Atlanta consistently ranked below the national
benchmark for both retail and eating and drinking establishments;

While Miami has the second-most vibrant
independent business community for retail, the city fell below the national
average for eating and drinking establishments;

Los Angeles has strong independent retailers,
but its independent eating and drinking establishments are a smaller part of
the local economy compared to the national benchmark;

Chicago was among the leading cities for
eating and drinking establishments, but dropped to the near bottom for
retail;

Seattle also has a healthy independent
business community for eating and drinking but its independent retail ranked
below the national benchmark;

After suffering substantial erosion, Detroit's
percentage of independent retailers has leveled off in the past decade.
However, its percentage of independent eating and drinking establishments
fell below the national benchmark.

Study MethodologyThe American Express OPEN Independent Retail Index is based on the most
recent National Establishment Time-Series Database (NETS). NETS is built from
the business dataset compiled by Dun & Bradstreet (D&B) from 1990 to 2009.

This study was prepared for American Express OPEN by Civic Economics, an
economic analysis and strategic planning consultancy. Civic Economics procured
from Walls & Associates a subset of NETS, which comprised of 1.4 million
establishments (an establishment is a single storefront location) in retail and
food and beverage sectors. Each of those businesses operated at least one year
in at least one of the counties used to produce a representative sample of the
American retail marketplace. The sample was comprised of 145 counties. Fifteen
major cities were identified in advance of the study, including a total of 19
counties. The remaining 126 counties were randomly selected within six groups
defined by population and metropolitan area status.

To produce a representative national sample for benchmarking purposes, Civic
Economics weighted county data twice: once within the six classes and again
among the six classes of counties. The size of the sample, nearly 20 percent of
the national population, provides a valid basis for analysis. The stratified
weighting within the sample allowed the development of a representative national
benchmark.

To measure the changes in home values provided by a thriving independent
business community, Civic Economics identified relevant zip codes and used
Zillow.com to download data on the median sales price of residential properties
in those neighborhoods.

About American Express OPEN
American Express OPEN is the leading payment card issuer for small businesses in
the United States and supports business owners with products and services to
help them run and grow their businesses. This includes business charge and
credit cards that deliver purchasing power, flexibility, rewards, savings on
business services from an expanded lineup of partners and online tools and
services designed to help improve profitability. Learn more at
OPEN.com and connect with us at
openforum.com and
twitter.com/openforum.

About Civic Economics
Civic Economics is an economic analysis and strategic planning consultancy with
offices in Austin and Chicago. Founded in 2002 by Matt Cunningham and Dan
Houston, the firm has earned a national reputation for innovative approaches to
economic development challenges. Learn more at CivicEconomics.com.

* For purposes of this study, vitality is defined as a
business' sales measured as a percentage of the relevant local market.